Project Management Professional (PMP) Exam Practice – Question1635

A no-cost settlement sometimes is used______________


A.
To close out a successful contract
B. In lieu of formal termination procedures

C. When buyer property has been furnished under the contract
D. When such an arrangement is acceptable to one of the parties involved

Correct Answer: B

Explanation:

Explanation:
A no-cost settlement can be used in lieu of formal termination procedures when the seller has indicated that such an arrangement is acceptable, no buyer property has been furnished under the contract, no payments are due the seller, no other obligations are
outstanding, and the product or service can be readily obtained elsewhere.